Russell's survey to rank fundies' after-tax performance
Russell Investments is set to launch a new survey which would measure and rank fund managers on their after-tax returns.
The new Australian equities after-tax benchmarking survey would provide a benchmark to compare investment outcomes both on a pre-tax and after-tax basis - a requirement for superannuation fund investors under the Stronger Super reforms.
Russell's director of after-tax investment strategies Raewyn Williams said the new offering would answer questions clients may have around after-tax performance in light of the new legislative requirements.
"The survey will also help fund managers to benchmark where their strategies are at and will provide valuable information to address their investors' increased interest in how their portfolios - and Australian equities as an asset class - are performing on an after-tax basis," he said.
The new offering would report both pre-tax returns for Australian equities strategies and the after-tax return - that is, adjusted for the tax value of franking credits as applicable to superannuation funds.
"It is short-sighted to overlook the impact of franking credits as they represent about 1.4 per cent of a large-cap Australian equities benchmark return each year," Williams added.
"This is valued at around 70 basis points a year in additional returns to Australian equity super investors, yet is ignored in traditional surveys."
The firm's initial survey (which is currently running) would look at strategies for the year ending 30 June 2012, while future surveys would be produced on a quarterly basis, the company had announced.
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